Gulf Cooperation Council (GCC)Gulf Cooperation Council (GCC)

According to the proposition, GCCGCC countries should have enjoyed the free flow of goods, capital, and people - an arrangement that should have enhanced the ability of the GCCGCC to deal with the sudden collapse of its stock markets.

"Although it can be considered a matter of sover-eignty for each individual state as to the method applied to salvage its financial system, the GCCGCC failed to develop the kind of unity demonstrated by the European Union in the face of crisis," Abdul Rahim Hassan Naqi, secretary-general of the Federation of GCC Chambers of Commerce, said on Tuesday.

"I have suggested today the establishment of a GCCGCC investment fund through a partnership between the public and private sectors in the GCCGCC countries to intervene in times of crisis and to maintain the stability of the GCCGCC bourses," he said at a forum for GCCGCC financial brokers in the capital yesterday.

The chamber federation will form a taskforce to assess the situation, followed by a conference to implement the initiative.

Many officials blame foreign funds for the stock markets' collapse in the GCCGCC and Arab world as a whole.

"GCCGCC and Arab stock markets will be better off if they place caps or even taxation on short-term foreign investments, to prevent foreign funds from hurting our econ-omies," suggested Mervat Tallawy, coordinator general of the Arab Economic and Social Development Summit at the Arab League.

A summit for the business community will take place in Kuwait next January 17 to 20 to discuss means of enhancing Arab economic cooperation.

"It will precede the summit of the heads of state which will follow on January 19 and 20," she said.

By Ahmed A. Elewa

© Gulf News 2008

 

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